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Why BioNeutra Global Corporation's (CVE:BGA) CEO Pay Matters To You

Simply Wall St

In 2014 Jianhua Zhu was appointed CEO of BioNeutra Global Corporation (CVE:BGA). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for BioNeutra Global

How Does Jianhua Zhu's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that BioNeutra Global Corporation has a market cap of CA$15m, and reported total annual CEO compensation of CA$188k for the year to December 2018. Notably, the salary of CA$179k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CA$261m, and the median CEO total compensation was CA$219k.

So Jianhua Zhu is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at BioNeutra Global, below.

TSXV:BGA CEO Compensation, January 12th 2020

Is BioNeutra Global Corporation Growing?

BioNeutra Global Corporation has reduced its earnings per share by an average of 50% a year, over the last three years (measured with a line of best fit). Its revenue is down 8.2% over last year.

Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has BioNeutra Global Corporation Been A Good Investment?

Given the total loss of 31% over three years, many shareholders in BioNeutra Global Corporation are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Jianhua Zhu is paid around the same as most CEOs of similar size companies.

Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying BioNeutra Global shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.